Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $63,000 per ton, one-fourth of which is allocated to product X15. Six thousand eight hundred units of product X15 are produced from each ton of clypton. The units can be either sold at the split-off point for $16 each or processed further at a total cost of $6,100 and then sold for $21 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should be
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- Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $71,000 per ton, one-fourth of which is allocated to product X15. Six thousand five hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8,800 and then sold for $22 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should beWexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $53,000 per ton, one-fourth of which is allocated to product X15. Eight thousand three hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $10 each, or processed further at a total cost of $7,100 and then sold for $13 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should beWexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Answer is complete but not entirely correct. Financial advantage Product X15 should be 48,000 Processed further
- Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should beCorona Enterprise (CE) produces a variety of herbs from processing 1 ton of Krypton, a rare mineral. Material and processing costs total RM60,000 per ton, where 1/4 of its are allocated to product C19. About 7,000 units of product C19 are produced from each ton of Krypton. The units can either be sold at the split-off point for RM9.00 each, or processed further at a total cost of RM9,500 and then be sold RM12.00 each. On the other hand, CE also processes the other 3/4 of ton of krypton to produce herbs for use in cosmetic products. However, there is an outside supplier has offered to sell the herb to CE at a price of RM35 per unit. CE is currently producing the herb at 15,000 units. To evaluate this offer, CE has gathered the following cost information as if the herb is produced internally. RM/unit herb RM/15,000unit herbsDirect materials (Krypton) 14 210,000Direct labour…Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $75,000, and the result is 6,200 gallons of anderine and 8,200 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $6.65 per gallon. Alternatively, the anderine can be processed further at a cost of $8.90 per gallon (of anderine) into cermine. It takes 2 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $59. 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 540 gallons of anderine that undergo further processing require 20 more purchase orders at $12 each and 13 more quality inspection hours at $22 each. Which alternative would be better and by how much?NOTE: Round interim calculations and your final…
- Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $73,000, and the result is 5,900 gallons of anderine and 8,200 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $12.00 per gallon and the dofinol for $6.30 per gallon. Alternatively, the anderine can be processed further at a cost of $7.90 per gallon (of anderine) into cermine. It takes 4 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $65.Lido Products produces two products (A and B) from a joint process. The joint cost of production is $80,000. Five thousand units of Product A can be sold at split-off for $20 per unit or processed further at an additional cost of $20 000 and sold for $25 per unit. Ten thousand units of Product B can be sold at split-off for $15 per unit or processed further at an additional cost of $20,000 and sold for $16 per unit. What is the difference in profit if Lido decides to process further Product B, instead of selling it at split-off?Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $63,000 after incurring additional processing costs of $25,200. The copper is sold for $101,000 after additional processing costs of $11,000, and the manganese yield sells for $68,000 but requires additional processing costs of $15,800. The joint costs of processing the raw ore, including the cost of mining, are $185,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.) Lead Copper Manganese Approximate sales value at split-off Percent of total sales values at split-off % % % Cost allocation
- Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $70,500, and the result is 5,600 gallons of anderine and 8,300 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $10.00 per gallon and the dofinol for $6.95 per gallon. Alternatively, the anderine can be processed further at a cost of $7.30 per gallon (of anderine) into cermine. It takes 4 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $61. 1. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 520 gallons of anderine that undergo further processing require 18 more purchase orders at $12 each and 16 more quality inspection hours at $22 each. Which alternative would be better and by how much?NOTE: Round interim calculations and your…Caribu Company produces sanitation products after processing specialized chemicals; Thefollowing relates to its activities: 1 Kilogram of chemicals purchased for $2000 and with an additional $1000 isprocessed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, agram of Crystal can be sold for $1 and the Cleaning agent can be sold for $4 per litre. At an additional cost of $400, Caribu can process the 400 grams of Crystal into 500grams of Detergent that can be sold for $2 per gram. The 80 litres of Cleaning agent ispackaged at an additional cost of $300 and made into 200 packs of Softener that canbe sold for $2 per pack. Required:1. Allocate the joint cost to the Detergent and the Softener using the following:a. Sales value at split-off methodb. NRV method 2. Should Caribu have processed each of the products further? What effect does the allocation method have on this decision?Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $74,000, and the result is 6,000 gallons of anderine and 8,000 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11 per gallon and the dofinol for $6.75 per gallon. Alternatively, the anderine can be processed further at a cost of $8 per gallon (of anderine) into cermine. It takes 3 gallons of anderine for every gallon of cermine. A gallon of cermine sells for $60. Required: 1. Which alternative is more cost effective and by how much? Process it further by $fill in the blank 2 2. What if the production of anderine into cermine required additional purchasing and quality inspection activity? Every 500 gallons of anderine that undergo further processing require 20 more purchase orders at $10 each and 15 more quality inspection hours at…